Consider extending your termBank of Canada
When you refinance, you effectively trade in your old mortgage for one with a different rate or term. If you get a longer term, or amortization period, your monthly payments will be reduced. . These fees can amount to thousands of dollars, so you want to know what you’re facing if you’re thinking of selling your home. The fees are usually either three months interest on what you owe, or the difference between your interest rate, the current rate and the amount of time left on your mortgage.
“Given the current economic environment, we’ve seen a growing preference toward short-term fixed rates versus variable-rate mortgages,” said Lucreziano. Variable-rate mortgages have traditionally had lower interest rates, but in the age of rate hikes, that’s no longer the case.Article content